Understanding FICO® Scoring

[MarineVietVet]

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cassembler wrote:

I believe closed installments still count towards your credit mix... Could be wrong.

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They do although open, active accounts are given more weight.

[cassembler]

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MarineVietVet wrote:

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cassembler wrote:

I believe closed installments still count towards your credit mix... Could be wrong.

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They do although open, active accounts are given more weight.

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So all things equal, a report with a single closed installment will tend to have a slighlty lower score than a report with a single open installment (taking balance out of the mix)? Similar to revolving accounts falling into a "not active" state?

[MarineVietVet]

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cassembler wrote:

 

So all things equal, a report with a single closed installment will tend to have a slighlty lower score than a report with a single open installment (taking balance out of the mix)? Similar to revolving accounts falling into a "not active" state?

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That's the way I understand it. But exactly how much "slightly" lower can mean is one of those YMMV situations.

[jetsfan2012]

Interesting. I sold a car and paid off a small car loan I had that was open less than 12 months, and my score went up 10 points. YMMV

[ztnjpv]

At 760, you have plenty of cushion for a small hit, IMHO, within the excellent range. My local bank's 2nd tier of rates starts at below 730 and it's a rather conservative bank. 

[golo]

I just paid mine last month and it didn't move. 

[cassembler]

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golo wrote:

I just paid mine last month and it didn't move. 

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Me neither... But, the purpose wasn't to increase my score, it was to get rid of the payment... Much better IMHO

[BigDaddy18]

Well if you pay off your car and it dosen't move then the only next logical thing to do it go buy a new motorcycle duh!!

[cassembler]

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BigDaddy18 wrote:

Well if you pay off your car and it dosen't move then the only next logical thing to do it go buy a new motorcycle duh!!

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Let me forward that to my wife and see what happens. I made the terribly unfortunate mistake of promising never to buy a motorcycle as a condition of marriage, and I've since whittled it down to, "Once the kids are all in college."

[jeffgucci]

Excellent thread...paid my loan of last Friday and was waiting to see the affects...Thanks guys!